O'Reilly Automotive (ORLY) reported robust third-quarter performance, with revenue and earnings surpassing expectations, fueled by sustained demand in its core auto parts retail segment. The results reflect solid operational execution and positive consumer spending trends.
- Adjusted EPS of $6.28, up 14% YoY and $0.21 above estimates
- Revenue of $2.13 billion, a 9% increase from prior-year quarter
- Same-store sales growth of 7.5%
- Gross margin improved by 120 basis points
- 42 new stores opened, bringing total to 5,860
- Full-year guidance reaffirmed with adjusted EPS expected between $24.75 and $25.25
O'Reilly Automotive (ORLY) delivered a standout third-quarter performance, reporting adjusted earnings per share of $6.28, a 14% increase year-over-year and exceeding analyst estimates by $0.21. Total revenue reached $2.13 billion, up 9% from the same period last year, driven by a 7.5% increase in same-store sales growth. The company attributed gains to higher demand for replacement parts and services, particularly in the professional installer and DIY customer segments. The strong results were underpinned by a 120 basis point improvement in gross margin, reflecting effective supply chain management and disciplined pricing strategies. O'Reilly also expanded its store footprint by opening 42 new locations during the quarter, bringing the total to 5,860 stores across the U.S. and Puerto Rico. The company maintained its full-year guidance, reaffirming expectations for revenue growth in the mid-single-digit range and adjusted EPS in the $24.75 to $25.25 band. The positive momentum has elevated investor confidence, with ORLY shares rising 6.3% in after-hours trading following the earnings release. The stock’s performance is being closely watched by peers in the auto parts retail sector, including Advance Auto Parts (AAP) and AutoZone (AZO), as well as sector-focused ETFs like the Consumer Discretionary Select Sector SPDR Fund (XLY). Analysts note that O'Reilly’s ability to maintain margin resilience amid inflationary pressures signals strong competitive positioning.